Singapore-based cryptocurrency exchange KuCoin has marked its foray
into Australia with a multi-million investment in a regulated domestic
exchange, part of a new joint venture.
The Australian Financial Review is reporting that KuCoin has invested the AUD $3 million investment in
Bitcoin Australia, a domestic exchange that enables bitcoin trading and
ethereum buying, enabling the Asian exchange operator enter the Aussie
market with a marked focus on high-end, advanced investors.
Bitcoin Australia will meanwhile use the newly gained finances to
fund its own expansion efforts into retail investor markets around the
world. Founded in 2015, Bitcoin Australia has a presence in Canada and
the Netherlands beyond its shores presently. Chief executive Rupert
Hackett claims the company’s own aggressive expansion will target 30
countries before the end of 2020.
While targeting different markets, both companies have “clear
synergies” leading to the joint-venture, the executive said, telling the AFR:
“It will effectively create an exchange for intermediate
and advanced traders, while we’re a mass market approach, making us
quite synergistic. We’ll build the consumer-friendly retail experience
for people entering the market, while supporting KuCoin for advanced
traders”
A crypto-to-crypto only exchange, KuCoin is currently working on the
alpha version of its fiat exchange that is expected to launch in Q4
2018.
The exchange has seen $10.5 million in transactional volume over a 24-hour period, according to data from CoinmarketCap. The exchange employs 300 people and has over 4 million users on its platform, according to the report.
“I want to confirm that this is true,” KuCoin chief executive Michael Gan said of the company’s investment. “This is not only a great strategic
decision but will be an excellent long-lasting partnership for us to
help cryptocurrency grow globally.”
Bitcoin Australia’s newly-gained investment toward expansion plans comes at a time when domestic exchanges are regulated by the Australian Transactions and Reporting Analysis Center (AUSTRAC).
Introduced in April, the regulations mandate domestic exchanges to
enroll in the watchdog’s register while complying with
know-your-customer (KYC) and anti-money laundering &
counter-terrorism financing (AML/CTF) norms.
